09:45 AM EST, 03/06/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $60 to $120, based on 17.1x our FY 2025 (Jan.) EPS estimate and higher than the company's three-year average forward P/E multiple of 14.8x. We raise our FY 2025 EPS view by $3.00 to $7.00 and initiate FY 2026's at $5.00. ANF posted normalized Q4 EPS of $2.97 vs. $0.81, $0.12 above consensus estimates on revenues of $1.45B vs. $1.20B and $22M above estimates. By brand, Abercrombie sales grew 35% Y/Y while Hollister sales increased by 9%. By region, the Americas revenues grew 23% Y/Y, EMEA sales increased 13%, and APAC sales grew 21%. Q4 gross margin improved 600 bps Y/Y, driven by a 340-bp improvement from average unit retail growth and a 300-bp improvement in freight costs. Although we believe valuation is stretched and expectations are elevated, we can't fight the clear momentum of the Abercrombie brand. We would be cautious about chasing shares after a 4x move in just one year and would wait a few more quarters to see if this is sustainable growth or just a quick TikTok trend.